Where to Invest $10,000 or Less in Gold or Silver Coins

You have savings and you're ready to invest. Is Gold Coins the way to go? Starting down the road of physical gold and silver bullion investing is different than anything you've done before and it can be confusing, frustrating, and profitable if and once you have educated yourself. 

The Plug is glad you are here because we want to be your go-to for crucial information to help you make significant investing decisions. If you are new to Physical Gold and Silver as investment options, check out our page the Beginners Guide to Investing in Physical Gold. 

If you are just starting out on your precious metals investment journey or this is your 100th purchase, this blog will help provide essential and key information to know before you invest your next $100 or $10,000. The companies shown can help you buy coins and start your investment journey. But the knowledge you gain will be more valuable than the purchase you make!

This blog article is geared toward those who are starting their journey into investing in physical gold or silver coins and bars. If you are a seasoned investor and you are looking to roll over a large portion of your retirement portfolio to physical precious metals then check out our blog on the 5 Best Gold IRA Companies as our top choice is where you want to start.  

You may have heard that gold has increased over 360% in the past 30 years and it's a great hedge against inflation. If you are concerned about a potential market crash and you are looking to diversify your portfolio, then gold is a good choice. No matter what has drawn you to this page we will help you understand the process of buying physical gold. 

The Plug is here to help you make informed decisions. We are not biased and only want you to make a good decision when it comes to physical gold. Here are our top three gold sellers online that can get you started.

Initial Thoughts Before Starting Your Physical Gold Investing

Investing in physical gold is an investment outside the stock, mutual fund, or bond markets. If you are purchasing coins with cash, you will be taking physical possession and it is your responsibility to secure the coins or bars. Understanding the difference in spot, market, and buy and sell prices will provide insight into the different retail prices.

A good way to invest without using savings is by using an existing 401(k) or other retirement money and opening a new self-directed IRA. This option keeps the retirement funds in an IRA giving you another avenue to diversify your investment portfolio and safeguard gains. The tax benefits can also play into the decision to open an SDIRA. But, the downside is you need to keep the money in the account or you will be penalized for early withdrawal. 

As a new investor in gold coins, we recommend you not gamble your money away. The first investment choice, in our opinion, should be the most liquid and in-demand coins on the market.

The most understood gold market is that bullion and proof coins. A savvy investor may choose to look into unique coins, rounds, or numismatic opportunities. But those new investors, looking to understand their buying decisions, should stick to coins that are IRA eligible gold approved. 

Just because we recommend IRA-approved coins does not mean you need to open a Gold or Silver IRA. You can purchase IRA-approved coins outside your IRA with your savings. Check out our Buying Gold or Silver in an IRA for more information. 

As a new investor in physical gold or silver, there are a few questions you might ask yourself before buying.

1. Is this a one-time purchase?  If you have $5,000 or $10,000 and want to invest the cash versus letting it sit in your savings or under your mattress, then choose any of the companies we have provided. They all can help you purchase the coins and have them sent to your residence.
2. Is this something you might do many times over? Buying any asset over time multiple times is dollar cost averaging. This is beneficial as you can purchase when the market is up or down and this will develop a consistent investing habit. Start looking into the history and reviews of a company before you purchase from a new dealer and ask the pertinent question, do you own the coins already? Understanding their processes, costs, and customer issues will help you make an informed decision on the online retailer.  
3. Are you looking to open your first self-directed IRA and invest yearly in your gold IRA? This is a big decision right now. If you think you will purchase coins over time and would like to put those coins in an IRA, then you need to start a gold IRA before you purchase your coins. Once you purchase coins outside your IRA you cannot place them into your IRA. But there is nothing wrong with owning gold or silver coins both in and outside an IRA. 

Why Invest in Physical Gold?

There are several reasons to consider gold as an investment option. Having physical gold in your possession gives you a sense of pride that you are securing your money for the future. You also have the ability, when you own physical gold, to sell when the market is good and hold when the market is down.

These are just two reasons to invest in physical gold. Recently I was told by a young investor they like to spend their cash. To not spend their liquid cash he decided to purchase physical gold and silver coins. He was less apt to sell the coins to get cash at a later date and found that buying precious metal coins provided him with a better savings habit. Over time he has built up a good investment of gold and silver coins. 

In this case, unlike physical cash, there is a potential for the coins to increase in value and be worth more in 5, 10, 20, or 50 years. Cash on the other hand will not increase in value. When the economy is strong you may have more buying power with cash and gold prices may be down. But when inflation increases your cash is worth less. Today, cash purchases are less than they did even 3 years ago. How many times have you said "the price of gas" or "the price of groceries" is so much more today than last year? 

Invest in Gold with Cash or Should I Rollover from My Retirement Accounts?

Investment rollovers are typically from an existing IRA to a self-directed precious metals IRA or from a prior employer 401(k) to a self-directed IRA.

If you have no prior employer retirement account to roll over then this is not an option. You could, if you have an existing retirement account, sell some assets and choose to roll over to a new self-directed IRA. Consult your tax advisor prior to making this decision. There is generally no penalty for moving some IRA funds to a new Gold IRA, but we are not tax professionals and suggest you contact an advisor. 

Opening a New Gold IRA to fund using your earned income is a possibility. When you fund a gold IRA in this manner you have the same requirements as a standard IRA for contributions. 

IRA Contribution Limits for 2023

• Under Age 50 - $6,500
• 50 Years or Older - $7,500

Self-Directed IRA Transfers and Rollover Limits

The rollover from one retirement account to another is not limited to an amount and is always tax-free as long as the funds are transferred from one retirement account to another. 

Gold Prices - Understand Spot Prices and Premiums

To be an informed investor there are a few things to know about the price applied to gold or silver coins and bullion. The spot price is also known as the "bid" price. The Bid price is what buyers are willing to pay for gold or silver bullion in the market.

Gold is traded on several exchanges around the world and therefore available to be purchased at any time by institutions. Since it trades throughout the day, the "spot" price of gold changes every second of the day. Institutional buyers purchase based on "fixed-price" contracts from the London Bullion Market Association (LBMA). These prices are fixed twice per day. 

You do not purchase coins or bullion at the spot price even though every dealer provides spot price graphs for their viewers on the internet. You purchase coins and bars with an added premium. The spot price is where sellers start their pricing and then premiums and fees are applied. The final price is the retail or advertised price to the consumer.

The spot price is based on the raw material. Once the material is manufactured into bullion or proof coins and bars the additional costs are attached and ultimately the purchase of finished coins or proofs has premiums that are applied. 

When you are ready to purchase your gold make sure you ask what the price is for the coins or bars and not what the spot price for gold is currently. You can find out the current spot price before you make the call. Then you can extrapolate the premium for the coin.

The spot price is based on 1 troy ounce of gold.  Click here to get more information on the differences between Gold Bullion and Gold Proofs. These differences will also change the retail price of coins and bars.

How Much Gold Should I Own?

Professional investment portfolio managers indicate that a diversified portfolio is the best method to conserve and build wealth. Depending on your age will help you determine how much of what investment segment you should have. 

Physical gold and silver ownership in your portfolio, as a rule of thumb, should be between 5% and 10% of your portfolio. This is just a "rule of thumb". You decide what amount is best for your portfolio.

A younger professional should be looking for investments with a more aggressive future. But that doesn't mean you shouldn't consider gold as an investment. As stated earlier, over the past 30 years gold has increased by 360%. So investing in gold along your journey to retirement is a good idea to diversify your portfolio.

As your professional life continues and you get older you may choose to conserve your money more and purchase more gold or silver. Continuing in the 5-10 percent range for your overall portfolio. If your stock portfolio has skyrocketed recently then maybe that is a good time to conserve some of the profits and move to a conservative investment.

Shipping Gold and Silver Coins and Bars?

Once you purchase your bullion you will need to get it shipped to your home or work. Most companies will ship the gold in a nondescript box. This will help keep the package from being stolen during shipping. 

Questions You Need to Ask About Shipping:

1. Who is responsible for the shipping cost?
2. How Much is the Shipping?
3. Who insures the package until delivered?
4. Do you require my signature for delivery?
5. If I don't receive my gold in the mail what are the procedures?

How Long Will It Take To Get My Bullion?

This question should be asked of each company you are talking with. Depending on how much gold or silver you are purchasing will influence how long it will take to ship. 

Ask the business if they have your coins on hand or if they need to purchase them before they ship.

Every business will have a different delivery timeframe. Making sure you understand when the shipment will be sent will help understand when you will receive your coins. 

Even though a shipment may take 4-6 weeks to get in the mail. The price you paid for the coins is based on when your transaction took place.

If you know their delivery time is 4-6 weeks then understand you will not be able to sell your coins until you have the coins in hand. 

If you are purchasing as a long-term investment then the delivery time should not matter. But, if you plan to flip the coins hoping for a quick return the delivery time may influence your decisions.

Final Thoughts on Investing in Gold with Less than 10 Thousand Dollars

You have saved up that $10,000 and now you are ready to buy gold coins. You have the information necessary to ask the questions and get the gold you want. 

Make sure you cover these questions:

1. Do you have the bullion on hand?
2. Do you have the proof coins?
3. How long before I get my Coins?
4. How do I open an Account?
5. How do I pay for the coins?
6. Who insures the package until I receive it?
7. When is the shipping my responsibility?
8. How long have you been in business?
9. Are there additional fees? or is the price quoted what I will be paying?

When comparing prices make sure you are comparing like kind. Earlier we said that The Plug recommends buying IRA-approved gold or silver. Some precious metals companies will push investing in rounds or non-IRA-approved coins. 

There is a difference between rounds and coins. Private mints produce rounds. The final cost of the round per Troy Ounce of Gold may be more or less than the market spot price. These Private Mints do produce quality gold products but are not IRA approved.

Gold Round - is produced by a private mint and has no face value for the coin.

Gold Coin - is produced by a Sovereign nation or produced for a Sovereign Nation. These coins have a face value. American Eagle Gold Coins have face values of $5, $10, $25, and $50.

So make sure you understand what they are selling or have available when you talk. Compare apples to apples if you are price shopping. 

We hope you have found this information useful and helpful when you make your first or next gold coin purchase. You can find additional information on our site and many reviews of both online precious metals companies and local businesses.